AEON Credit Service (M) Berhad has secured RM600 million in Sustainability-Linked Loans (SLLs) for the first time with a three-year tenure, partnering with two Japanese banks and a local bank: Mizuho Bank (Malaysia) Berhad, MUFG Bank (Malaysia) Berhad, and CIMB Bank Berhad.
These SLLs recognise the Group’s efforts in Environmental, Social, and Governance (ESG) practices, aligned with the Group’s three-year Sustainability Roadmap. The proceeds will be used for general working capital, refinancing purposes, and to enhance sustainability performance, contributing to the United Nations’ Sustainable Development Goals (SDGs).
Predetermined Sustainability Performance Targets (SPTs) in line with the Group’s existing sustainability framework have been established for assessment purposes upon securing these SLLs. AEON Credit will incorporate the SPTs into the evaluation of business and financial performance, with interest rate adjustments subject to the achievement of these targets.
Daisuke Maeda, Managing Director of AEON Credit, said: “Securing the SLLs marks another milestone for the Group as we continue to strengthen our commitment to ESG while creating long-term value for our stakeholders. Guided by our corporate philosophy of Pursuing Peace, Respecting Humanity, and Contributing to Local Communities, we recognise the importance of integrating sustainability into our business model and daily operations. We have set commitments to lead the market in electric motorcycle financing, provide financial inclusion for micro-enterprises, promote ESG education in schools, and continue our efforts towards a carbon-neutral business while upholding good corporate governance practices.”
In 2022, the Group introduced the AEON Member Plus Privilege Card for Hawkers and Petty Traders and the IN2NIAGA application in collaboration with the Ministry of Entrepreneur Development and Cooperatives and In2Niaga Sdn. Bhd. as part of its financial inclusion initiative. The privilege card allows hawkers and petty traders registered with MEDAC to make secure and efficient cashless transactions for their businesses, while being protected under the Social Security Organisation’s (SOCSO’s) Self-Employment Social Security Scheme (SESSS), which offers automatic enrolment for cardholders.
In November 2023, the Group officially unveiled a groundbreaking Electric Motorcycle Financing scheme, complementing its existing Hire-Purchase i-Scheme and addressing the growing demand in the electric vehicle (EV) financing market. This initiative aligns perfectly with the Group’s three-year Sustainability Roadmap and its unwavering commitment to achieving carbon neutrality by 2030 through the introduction of low-carbon mobility financing in Malaysia.
